More encouraging signs for the commercial market this week as Allsop release their largest commercial catalogue since October 2006 comprising 158 properties. This reflects the markets increasing stability and vendors’ expectations are drawing closer in line to the market.
The sale will take place on 5th July at the Park Lane Hotel on behalf of wide range of vendors including ING Real Estate, Tesco, ADP Dental Company Ltd and The United St Saviour’s Charity. A third of the catalogue (48 out of 158 lots) will be sold on behalf of receivers. Auctions are increasingly recognised as an efficient method or realising and maximising the value of property assets in accordance to their responsibility to the banks. Allsop achieved a 100% success rate for their last two commercial sales on all distressed stock.
The pressure of refinancing loans is also playing a part in the increase of lots as new finances continues to be scarce and is typically a costly process. The catalogue includes some very healthy performing stock and is attracting cash rich investors.
The largest lot of the sale is lot 95, which comprises of two prime city centre freehold retail investments, let to The Body Shop International Plc and Molton Brown Ltd on leases expiring in 2018 and 2020. The guide price is £3.85M – £3.95M.
The largest distressed lot, lot 86 is well a located freehold bank investment let to the Bank of Scotland plc sold in July 2007 at the peak for £3.01M reflecting a net initial yield of 3.78%. The guide price for our July sale is set at £1.75M – £2M reflecting a net initial yield of around 6.89%.
Prime retail investments are dominating the catalogue with quality retail investments in Earls Court Road London, Henley on Thames, Chester, Maidenhead, Newmarket, Dorchester, Southall, Tunbridge Wells and Nottingham offering the best for towns seen at auction for some time.
Other highlights include:
Lot 106, a Porsche centre in Sutton Coldfield with a guide price of £2M – £2.2M.
Lot 15 a Grade II listed retail bank investment in Tunbridge Wells with a guide price of £1.1M – £1.15M
Rare freehold opportunities in Southhall represented in lots 90 and 91 are all expected to spark keen investor interest.
Lot 92, a Tesco express in Leeds with a 125 year lease and five yearly rent reviews linked to API is already proving to be phenomenally popular. The guide price is £275,000 – £300,000.
There are also 10 Coral betting shops offered all in prominent high street locations offered as lots 21, 22, 57, 58, 76, 78, 79, 82, 115, 116.
It is also interesting to note that Allsop will be holding 3 property auction sales in July. Their Commercial auction Tuesday 5th July, Irish auction on Thursday 7th July and Residential auction on Thursday 14th. We think this might be a first in the property industry.
To view the full catalogue please click here
Notes to editor
Allsop is an independent property consultancy with a market-leading reputation for high quality service, integrity and innovation. We are also well known as the UK’s largest and most successful auction house. Our success is built on over 100 years’ experience in commercial and residential property consultancy and sales.
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